Bitcoin Surges 4.659% Amid U.S.-China Trade Tensions, Impacting Miners

Bitcoin's latest price was $83199.06, up 4.659% in the last 24 hours. The recent trade tensions between the United States and China have had a significant impact on Bitcoin miners in the U.S., leading to increased equipment costs and potential disruptions in operations. The White House's announcement on April 9, 2025, of a 125% import tax on China, in addition to a 20% tariff imposed by President Trump, has exacerbated the situation. This move is part of a broader strategy to address China's role in supplying fentanyl to the U.S., with Trump clarifying that tariffs on Chinese goods have increased by a total of 145% since he took office.

Bitcoin miners in the U.S. are heavily reliant on mining hardware produced in Southeast Asia, particularly from companies like Bitmain, MicroBT, and canaan. The newly imposed tariffs have placed levies on Thailand, Indonesia, and Malaysia, which are home to some of the largest mining rig manufacturers. As a result, U.S.-based miners sourcing equipment from these regions are facing significant business disruptions. Jaime McAvity, CEO of Cormint Data Systems, a U.S.-based mining company, highlighted that the tariffs will contribute to higher buildout costs, making it uneconomical to import miners manufactured in China. McAvity also noted that U.S. firms that ordered equipment from China but have yet to take delivery will likely sell them in the Chinese market, creating an attractive investment opportunity for non-U.S.-based miners.

Jill Ford, founder of bitford digital, a Texas-based company specializing in Bitcoin mining solutions and hosting services, emphasized that the newly imposed China tariffs will hit American Bitcoin miners the hardest. According to Ford, U.S. miners are now looking at a 22-36% increase in the cost of mining machines, which is significant in an industry where efficiency is crucial. This cost increase makes it difficult for U.S. miners to remain competitive with international miners who are not facing the same cost pressures. Ford believes that the newly imposed U.S. tariffs on China will create a major setback for the growth and global competitiveness of the American Bitcoin mining sector. The American Bitcoin mining industry is an important player in the global market, accounting for over 40% of the Bitcoin network’s global hashrate at the end of 2024. Two U.S.-based mining pools, Foundry USA and MARA Pool, accounted for over 38.5% of all blocks mined. However, with the majority of mining hardware being manufactured in China, U.S. miners are looking at an added 36% cost per machine, which will force tough decisions and potentially lead to more mining operations shifting overseas where equipment is more affordable and the market is healthier.

On the other hand, McAvity pointed out that as a result of the tariffs, mining suppliers are in the process of onshoring production to the U.S., including Cormint. He views the tariffs with China as a temporary business disruption, noting that while U.S. production costs are higher than China, it will contribute to a long-term increase in costs but shouldn't be too bad. Ford echoed this sentiment, advising U.S. Bitcoin miners to start exploring alternatives from U.S.-based manufacturers like Auradine. She noted that these alternatives are becoming more viable, with global leaders like Whatsminer producing machines domestically and Bitmain planning to open a U.S. warehouse this summer. Higher operational costs in the U.S. will make it less attractive for miners to expand their operations, but miners in countries unaffected by the tariffs could gain a competitive edge. Ford believes that the tariffs will likely slow hashrate growth in the U.S., but global hashrate will continue to rise as mining operations shift to more cost-effective regions. McAvity and Scott Offord, owner and founder of Bitcoin Mining World, pointed out that most miners with already installed hashrate will likely welcome the slow growth in new hashrate, as it could help existing miners with slightly better profitability in the short term. However, longer-term concerns about decentralization remain valid, and miners should closely monitor how hashrate distribution shifts globally as a result.

Adaptability will be key to success for U.S.-based miners. Ford stated that miners who diversify their supply chains and stay nimble will be in the best position to weather this disruption. Offord advises Bitcoin miners dealing with tariffs to be proactive, securing existing in-stock inventory quickly, exploring sourcing from lower-tariff countries, and prioritizing partnerships with manufacturers assembling rigs in the U.S. Optimizing current equipment’s lifespan and efficiency through careful maintenance and better tuning is also crucial. Well-prepared Bitcoin miners will likely be impacted much less. Zach Bradford, CEO of U.S.-based Bitcoin miner CleanSpark, noted that CleanSpark is prepared for the tariffs, with the majority of the company’s miners and infrastructure required to meet near-term goals already stateside. Bradford expressed confidence in CleanSpark’s ability to maintain its momentum and lead the industry forward despite the tariffs, which may slow down competitors who lack their scale and resilience.